DIRECTOR, ENFORCEMENT DIRECTORATE Vs. MAYA SANYAL

JUDGEMENT

(1.) A show cause memorandum dated 8.3.2001 was issued by the Special Director of Enforcement to the respondents House of Services and its Partners, Smt. Maya Sanyal and Smt. Indrani Sanyal, for contravention of provisions of Section 18(2) read with the Central Government Notification No.F1/67/EC/73-1 & 3 both dated 1.1.74 and Section 18(3) of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as FERA) and Section 68(1) of FERA.

(2.) It appears that the respondents had obtained duty draw back in the form of export incentive for exporting goods out of India for which as many as 27 GRs, details of which are given in the order in original dated 5.11.2005 passed by the Special Director of Enforcement. The documents to the overseas buyers were sent through Syndicate Bank, Connaught Place, New Delhi. The case of the Department was that the respondents had failed to secure export value to the extent of Rs.1,32,53,844.00 in respect of the goods exported by them. The respondents were required to show cause as to why the adjudication proceedings as contemplated under Section 51 of the FERA read with sub-sections (3) & (4) of Section 49 of the Foreign Exchange Management Act,1999 should not be held against them.

(3.) The respondents applied to the Reserve Bank of India (for short 'RBI') seeking write off/set off of the unrealized amount. The RBI vide its letter dated 24.4.2003 addressed to Syndicate Bank, Connaught Place, New Delhi and copy endorsed to the Special Director Enforcement Directorate, New Delhi, agreed to allow the set-off/write-off of the unrealized amounts in respect of the outstanding GR forms, as per respondents' letter dated 27.12.2002, subject to the exporter surrendering the amount of export incentives availed of, proportionate to the amount being written off and submitting to the Bank, appropriate documentary evidence for the same.